I need help please. I am not understanding how to do the multiplier.

Supposed that autonomous spending were to increase by 1, 000 billion and the multiplier is equal to 6.

I have to graph this but I don't understand where to start.

Question

I need help please. I am not understanding how to do the multiplier. 

Supposed that autonomous spending were to increase by 1, 000 billion  and the multiplier  is equal to 6.

I have to graph this but I don't understand where to start.

anonymous · Answer

Formula = 1/1-(MPC)

You can show the effect of multiplier like the one in the attachment

anonymous · Answer

Thanks! So what is the MPC? 1B or 6? I dont know what number to use. My book doesn't explain it well for me.  Maybe I am just not grasping it.

anonymous · Answer

Put in the values in the given formula. Dont worry you'll get it :)